Edgar Filing: NOMURA HOLDINGS INC

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Form 6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

Supplement for the month of April 2009.

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Highlights – Year ended March 2009

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	NOMURA HOLDINGS, INC.

Date: April 24, 2009	By:	/s/ Shinichiro Watanabe
		Shinichiro Watanabe
		Senior Corporate Managing Director

Financial Summary For the Year Ended March 31, 2009 (US GAAP)


Date:		April 24, 2009

Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Osaka, Nagoya
		(Overseas) New York, Singapore
Representative:		Kenichi Watanabe
		President and Chief Executive Officer, Nomura Holdings, Inc.
For inquiries:		Toshiki Shinjo
		Managing Director, Investor Relations Department, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	For the year ended March 31
	2009				2008
	(Yen amounts in millions, except per share data)
			% Change from March 31, 2008				% Change from March 31, 2007
Total revenue	664,511		(58.3	%)	1,593,722		(22.2	%)
Net revenue	312,627		(60.3	%)	787,257		(27.8	%)
Loss before income taxes	(779,046	)	—		(64,588	)	—
Net loss	(709,436	)	—		(67,847	)	—
Basic net loss per share	(365.33	)			(35.55	)
Diluted net loss per share	(366.80	)			(35.57	)
Return on shareholders’ equity	(39.9	%)			(3.3	%)
Income before income taxes to total assets	(3.1	%)			(0.2	%)
Income before income taxes divided by total revenue	(117.2	%)			(4.1	%)
Equity in earnings of affiliates	(5,534	)			10,416

(2) Financial Position
	At March 31
	2009				2008
	(Yen amounts in millions, except per share data)
Total assets			24,856,574				25,236,054
Shareholders’ equity			1,567,109				1,988,124
Shareholders’ equity as a percentage of total assets			6.3	%			7.9	%
Shareholders’ equity per share			601.63				1,042.60
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

(3) Cash flows
	For the year ended March 31
	2009				2008
	(Yen amounts in millions)
Net cash used in operating activities			(712,629	)			(647,906	)
Net cash used in investing activities			(98,905	)			(102,019	)
Net cash provided by financing activities			999,760				942,879
Cash and cash equivalents at end of period			613,566				507,236

2. Cash dividends


	For the year ended March 31
	2008		2009		2010 (Plan)
	(Yen amounts, except Total annual dividends)
Dividends per share
dividends record dates
At June 30	8.50		8.50		0.00
At September 30	8.50		8.50		—
At December 31	8.50		8.50		0.00
At March 31	8.50		0.00		—
For the year	34.00		25.50		—
Total annual dividends (Yen amounts in millions)	64,921		48,706		—
Consolidated payout ratio	—		—		—
Consolidated dividends as a percentage of shareholders’ equity per share	3.1	%	3.1	%	—

Note: Nomura plan to forgo dividend distribution for Q1 and Q3 of fiscal year 2010. Fiscal year 2010 Q2 and Q4 dividend amounts are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2010”.

3. Earnings forecasts for the year ending March 31, 2010

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

4. Other

(1) Significant changes to consolidated subsidiaries during the period : None

(2) Changes in accounting basis, procedure and presentation for the quarterly consolidated financial statements

The items described in “Significant changes for presenting the consolidated financial statements”.

Changes in accounting principles : Yes

Other changes : None

Note: Please refer to page 16, “Summary of accounting policies” for details.

(3) Number of shares issued (common stock)


	At March 31
	2009				2008
Number of shares outstanding (including treasury stock)			2,661,092,760			1,965,919,860
Treasury stock			56,312,917			57,886,944
Note: Please refer to page 18, “Per share data” for the number of shares used in basic net loss per share calculation. Parent Company Only Operating Results (Japanese GAAP) (1) Operating Results
	For the year ended March 31
	2009				2008
	(Yen amounts in millions, except per share data)
			% Change from March 31, 2008			% Change from March 31, 2007
Operating revenue	340,071		(19.0	%)	419,649	23.1
Operating income	135,303		(44.6	%)	244,380	19.0
Ordinary income	127,181		(48.3	%)	246,231	18.8
Net income (loss)	(394,545	)	—		53,985	(65.9	%)
Net profit (loss) per share	(203.05	)			28.27
Fully diluted net profit per share	—				28.07

(2) Financial Position
	At March 31
	2009				2008
	(Yen amounts in millions, except per share data)
Total assets			3,682,796			4,449,810
Total net assets			1,243,249			1,423,661
Total net assets as a percentage of total assets			33.0	%		31.7	%
Total net assets per share			457.01			740.17
Shareholders’ equity			1,216,133			1,412,260

* Notes on appropriate use of earnings forecast and other special remarks

Fiscal year 2010 Q2 and Q4 dividend amounts are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2010. “Nomura plan to forgo dividend distribution for Q1 and Q3 of fiscal year 2010.

Qualitative Information and Financial Statements

1.	Consolidated Results

(1)

Analysis of Consolidated Results

Operating Results

US GAAP


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net revenue	312.6		787.3		(60.3	)
Non-interest expenses	1,091.7		851.8		28.2

Income (loss) before income taxes	(779.0	)	(64.6	)	—
Income tax expense	(69.6	)	3.3		—

Net income (loss)	(709.4	)	(67.8	)	—

Return on equity	(39.9	%)	(3.3	%)	—

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of 312.6 billion yen for the fiscal year ended March 31, 2009, a decrease of 60.3% from the previous year. Non-interest expenses increased 28.2% from the previous year to 1,091.7 billion yen. Loss before income taxes was 779.0 billion yen for the fiscal year ended March 31, 2009. Net loss was 709.4 billion yen for the fiscal year ended March 31, 2009.

Segments Information


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net revenue	335.8		837.4		(59.9	)
Non-interest expenses	1,091.7		851.8		28.2

Income (loss) before income taxes	(755.9	)	(14.4	)	—

In business segment totals, which exclude unrealized losses on investments in equity securities held for operating purposes, net revenue for the fiscal year ended March 31, 2009 was 335.8 billion yen, a decrease of 59.9% from the previous year. Non-interest expenses increased 28.2% from the previous year to 1,091.7 billion yen. Loss before income taxes was 755.9 billion yen for the fiscal year ended March 31, 2009. Please refer to page 17 for further details of the differences between US GAAP and business segment values.

<Business Segment Results>

Operating Results of Retail


	Billions of yen		% Change
	For the year ended		(A-B)/(B)
	March 31, 2009 (A)	March 31, 2008 (B)	(A-B)/(B)
Net revenue	291.9	402.0	(27.4	)
Non-interest expenses	273.6	279.7	(2.2	)

Income (loss) before income taxes	18.2	122.3	(85.1	)



Net revenue decreased 27.4% from the previous year to 291.9 billion yen. The overall market slump triggered by turmoil in the global financial markets led to a decline in brokerage commissions and commissions for distribution of investment trusts. Non-interest expenses decreased 2.2% to 273.6 billion yen. As a result, income before income taxes decreased 85.1% to 18.2 billion yen.

Operating Results of Global Markets

	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net revenue	(157.3	)	95.6		—
Non-interest expenses	417.4		321.8		29.7

Income (loss) before income taxes	(574.6	)	(226.2	)	—

Net revenue was negative 157.3 billion yen, due primarily to turmoil in the global financial markets. The acquisition of certain operations of Lehman Brothers led to increase non-interest expenses by 29.7% from the previous year to 417.4 billion yen. As a result, loss before income taxes was 574.6 billion yen.

Operating Results of Investment Banking


	Billions of yen			% Change
	For the year ended			(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)	(A-B)/(B)
Net revenue	63.5		83.1	(23.6	)
Non-interest expenses	120.9		60.3	100.4

Income (loss) before income taxes	(57.4	)	22.8	—



	Billions of yen			% Change
	For the year ended			(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)	(A-B)/(B)
Net revenue	(69.9	)	64.8	—
Non-interest expenses	15.4		11.5	34.2

Income (loss) before income taxes	(85.3	)	53.3	—

Net revenue was negative 69.9 billion yen, due primarily to unrealized losses of certain investee companies. Non-interest expenses increased 34.2% from the previous year to 15.4 billion yen. As a result, loss before income taxes was 85.3 billion yen.

Operating Results of Asset Management


	Billions of yen		% Change
	For the year ended		(A-B)/(B)
	March 31, 2009 (A)	March 31, 2008 (B)	(A-B)/(B)
Net revenue	59.8	88.7	(32.6	)
Non-interest expenses	52.4	54.8	(4.3	)

Income (loss) before income taxes	7.4	34.0	(78.3	)

*	Defined contribution pension plan business in Asset Management was integrated to Other business in the second quarter of the fiscal year ending March 31, 2009. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.

Net revenue decreased 32.6% from the previous year to 59.8 billion yen. The decline was mainly attributable to the reduction in assets under management primarily driven by plunge in the stock market, and the unrealized losses from pilot funds and seed money for new product development. Non-interest expenses decreased 4.3% to 52.4 billion yen. As a result, income before income taxes decreased 78.3% to 7.4 billion yen.

Other Operating Results


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net revenue	147.7		103.2		43.2
Non-interest expenses	211.9		123.8		71.3

Income (loss) before income taxes	(64.2	)	(20.6	)	—

Net revenue in other operating results increased 43.2% from the previous year to 147.7 billion yen. Loss before income taxes was 64.2 billion yen.

Earnings Forecasts for Next Fiscal Year

(2)

Analysis of Financial Position

Total assets as of March 31, 2009, were 24.9 trillion yen, a decrease of 379.5 billion yen compared to March 31, 2008, reflecting primarily a decrease in Collateralized agreements. Total liabilities as of March 31, 2009, were 23.3 trillion yen, a decrease of 41.5 billion yen compared to March 31, 2008, mainly due to a decrease in Collateralized financing, Payables and deposits, and Trading liabilities. Total shareholders’ equity at March 31, 2009, was 1.6 trillion yen, a decrease of 421.0 billion yen compared to March 31, 2008, mainly reflecting a increase in Common stock due to the issuances of stock and a decrease in Retained earnings due to the recording of Net loss.

Cash and cash equivalents as of March 31, 2009, decreased by 106.3 billion yen compared to March 31, 2008. For the year ended March 31, 2009, net cash used in operating activities amounted to 712.6 billion yen due to an increase of trading related assets (net of trading related assets and liabilities). Net cash used in investing activities amounted to 98.9 billion yen due to an increase of system investment cost. Net cash provided by financing activities amounted to 999.8 billion due primarily to proceeds received from issuances of stock and Long-term borrowings.

(3)

Nomura’s Capital Management

Capital Management Policy

Nomura seeks to enhance shareholder value by capturing business opportunities as they develop. To achieve this goal, Nomura maintains sufficient capital to support its business. Nomura reviews its sufficiency of capital as appropriate, taking into consideration economic risks inherent in its businesses, regulatory requirements, and maintenance of a sufficient debt rating for a global financial institution.

Dividend

In regard to cash dividends, Nomura had set target dividend amounts based on the dividend-on-equity ratio (DOE) of 3% as the minimum level of cash dividend. When Nomura achieved a sufficient level of profit, it made additional cash dividend at a pay-out ratio exceeding 30%. For the fiscal year ended March 31, 2009, based on the target dividend amount of 34 yen per share, it paid 8.5 yen of dividend for the first, second, and third quarter. However, Nomura decided to forgo payment of the fourth quarter dividend, as it finished the year at a net loss. Accordingly, the total annual dividend for the current fiscal year is 25.5 yen per share.

For the fiscal year ending March 31, 2010, Nomura changed its dividend policy from the DOE focused one to the pay-out ratio of 30% as a key indicator so that it can achieve stable dividend payouts. The payment frequency will also be changed from quarterly (record dates: June 30, September 30, December 31 and March 31) to semi-annual (record dates: September 30 and March 31) in principle. Pursuant to Article 459 of Companies’ Act of Japan, in its Articles of Incorporation, Nomura established the capability to declare dividends from retained earnings by decision of the Board of Directors based on the record dates of June 30, September 30, December 31, and March 31 of each year.

As for retained earnings, Nomura intends to invest in business areas where high profitability and growth may reasonably be expected, including development and expansion of infrastructure, to maximize value for shareholders.

Stock Repurchase

Nomura repurchases shares when it recognizes the need to set out flexible financial strategies that allow the Board to respond quickly to changes in the business environment. When Nomura decides to set up a share buyback program, the firm will announce the decision soon after it is made and purchase of the shares would follow the internal guidelines. Nomura didn’t repurchase any during the fiscal year ended March 31, 2009.

2.	Organizational Structure

This section is omitted as there are no major changes in “Business Overview - Organizational Structure” and “Subsidiaries and Affiliates” in the most recent Nomura Holdings, Inc.’s “Annual Securities Report Pursuant to the Financial Instruments and Exchange Act for The Fiscal Year Ended March 31, 2008” annual report filed on June 30, 2008.

3.	Corporate Goals and Principles

(1)

Fundamental Management Policy

Nomura Group is committed to a management vision of firmly establishing itself as a globally competitive financial services group. We have also set a management target of maintaining an average consolidated return on equity (ROE) of 10% to 15% on a consolidated basis over the medium to long term.

We expect the deterioration of the economy and the challenging business environment due to the global turbulence in the financial market to continue. However, by turning the current environment and competitive conditions into an opportunity, we will push forward to build a new growth model that focuses on clients and improving our market share. We aim to achieve a balance between maintaining a sound financial base and the agile allocation of management resources for profit-generating opportunities. In addition, we will promote compliance with applicable laws, regulations and ensure proper corporate behavior.

(2)

Structure of Business Operations

Nomura Group is organized around globally-linked business divisions under a unified strategy, rather than individual legal entities. Nomura Group’s operations are comprised of Retail, Global Markets, Investment Banking, Merchant Banking and Asset Management. We will strive to achieve a higher level of specialization in each division, advance and progress our business in each respective area, and maximize the collective strength of Nomura Group by enhancing collaboration between business divisions.

(3)

Management Challenges and Strategies

The deterioration of economic conditions due to the turbulence in the U.S. and European financial markets has increased the severity of the downturn since autumn 2008, significantly affecting the real economies of both developed and emerging countries. The economic environment in Japan is also severer than ever. The combination of the appreciating yen and decreased foreign demand has forced domestic companies (especially export-driven firms) to significantly adjust production, while dire employment conditions have slowed domestic demand rapidly.

In this environment, we will plan to strategically allocate management resources to grow our client base, improve our market share, and increase profits. In addition, we will proceed with our plans to reduce costs by business reengineering and increasing operational efficiency. All employees will work together to improve our business performance. To do so, we will implement the following initiatives.

In Retail, we will continue to enhance our products and service offerings, which are provided through direct contacts, online or via call centers to accommodate customer needs that have become increasingly sophisticated and diverse. We aim to continue being a trusted partner to our clients by providing world-class quality products and services that meet their individual needs.

Global Markets will continue to be the product supply hub for Nomura. In light of the changing environment in the financial markets, we will focus on delivering high value-added products and solutions to our clients by enhancing our product development expertise in key areas such as derivatives, leveraging Instinet’s global trading infrastructure, and making full use of the strengthened business franchise. In Global Fixed Income, we will strengthen our global marketing structure, trading and product development by tapping into our increased human capital pool abroad. In Global Equities, we aim to establish ourselves as a bulge bracket firm that provides world-class liquidity.

In Investment Banking, we are expanding our M&A advisory and corporate financing advisory businesses by providing high value-added solutions to meet the individual needs of each client. With a strengthened business franchise in Asia and Europe, we aim to enhance our presence as a global investment bank centered in Asia that provides world-class services, while continuing to build our business in Japan.

In Merchant Banking, we remain focused on increasing the enterprise value of the companies in which we invest, and achieving optimal or immediate returns on investment by continually weighing exit strategy options. With the continued instability in the global investment environment, we are taking a more cautious approach to new investments and continually reevaluating the strategies of some businesses including withdrawal.

In Asset Management, we aim to increase our world-class competitive advantage in Japan and the rest of Asia by aggressively expanding our investment management and product delivery capabilities globally. In Japan, we intend to enhance our brand value by providing a diverse range of investment opportunities through various sales channels and pursuing further penetration into both individual and institutional investors. Outside Japan, we aim to expand our client base and increase assets under management by meeting international investor demand for investment opportunities in Japan and Asia.

In implementing the initiatives outlined above, we will enhance collaboration between business divisions. We aim to bring together the collective strengths of our domestic and international operations to realize our management objectives and maximize shareholder value by enhancing profitability across our businesses, while helping to strengthen the financial and capital markets.

4.	Consolidated Financial Statements

(1)

Consolidated Balance Sheets (UNAUDITED)


	Millions of yen
	March 31, 2009		March 31, 2008		Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents	613,566		507,236		106,330
Time deposits	537,084		758,130		(221,046	)
Deposits with stock exchanges and other segregated cash	272,059		168,701		103,358

	1,422,709		1,434,067		(11,358	)

Loans and receivables:
Loans receivable	519,179		784,262		(265,083	)
Receivables from customers	23,619		43,623		(20,004	)
Receivables from other than customers	1,103,974		361,114		742,860
Allowance for doubtful accounts	(3,765	)	(1,399	)	(2,366	)

	1,643,007		1,187,600		455,407

Collateralized agreements:
Securities purchased under agreements to resell	2,657,151		3,233,200		(576,049	)
Securities borrowed	5,755,467		7,158,167		(1,402,700	)

	8,412,618		10,391,367		(1,978,749	)

Trading assets and private equity investments*:
Trading assets	11,348,747		9,947,443		1,401,304
Private equity investments	323,865		330,745		(6,880	)

	11,672,612		10,278,188		1,394,424

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥225,475 million at March 31, 2009 and ¥260,910 million at March 31, 2008)	357,256		389,151		(31,895	)
Non-trading debt securities*	244,027		246,108		(2,081	)
Investments in equity securities*	118,902		139,330		(20,428	)
Investments in and advances to affiliated companies*	243,474		361,334		(117,860	)
Other	741,969		808,909		(66,940	)

	1,705,628		1,944,832		(239,204	)

Total assets	24,856,574		25,236,054		(379,480	)

*	Including securities pledged as collateral

Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.


	Millions of yen
	March 31, 2009		March 31, 2008		Increase/ (Decrease)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings	1,183,374		1,426,266		(242,892	)
Payables and deposits:
Payables to customers	403,797		264,679		139,118
Payables to other than customers	398,187		322,927		75,260
Deposits received at banks	440,334		362,775		77,559

	1,242,318		950,381		291,937

Collateralized financing:
Securities sold under agreements to repurchase	5,000,787		4,298,872		701,915
Securities loaned	2,243,152		3,753,730		(1,510,578	)
Other secured borrowings	2,914,015		2,488,129		425,886

	10,157,954		10,540,731		(382,777	)

Trading liabilities	4,752,054		4,469,942		282,112
Other liabilities	470,737		636,184		(165,447	)
Long-term borrowings	5,483,028		5,224,426		258,602

Total liabilities	23,289,465		23,247,930		41,535


Shareholders’ equity:
Common stock
Authorized - 6,000,000,000 shares
Issued - 2,661,092,760 shares at March 31, 2009 and
1,965,919,860 shares at March 31, 2008
Outstanding - 2,604,779,843 shares at March 31, 2009 and
1,906,885,059 shares at March 31, 2008	321,765		182,800		138,965
Additional paid-in capital	402,902		177,227		225,675
Retained earnings	1,037,313		1,779,783		(742,470	)
Accumulated other comprehensive income	(117,969	)	(71,111	)	(46,858	)

	1,644,011		2,068,699		(424,688	)
Common stock held in treasury, at cost -
56,312,917 shares at March 31, 2009 and 59,034,801 shares at March 31, 2008	(76,902	)	(80,575	)	3,673

Total shareholders’ equity	1,567,109		1,988,124		(421,015	)

Total liabilities and shareholders’ equity	24,856,574		25,236,054		(379,480	)

Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

(2)

Consolidated Statements of Operations (UNAUDITED)


	Millions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Revenue:
Commissions	306,803		404,659		(24.2	)
Fees from investment banking	54,953		85,096		(35.4	)
Asset management and portfolio service fees	140,166		189,712		(26.1	)
Net (loss) gain on trading	(128,339	)	61,720		—
(Loss) gain on private equity investments	(54,791	)	76,505		—
Interest and dividends	331,356		796,540		(58.4	)
Loss on investments in equity securities	(25,500	)	(48,695	)	—
Other	39,863		28,185		41.4

Total revenue	664,511		1,593,722		(58.3	)
Interest expense	351,884		806,465		(56.4	)

Net revenue	312,627		787,257		(60.3	)

Non-interest expenses :
Compensation and benefits	491,555		366,805		34.0
Commissions and floor brokerage	73,681		90,192		(18.3	)
Information processing and communications	154,980		135,004		14.8
Occupancy and related depreciation	78,480		64,841		21.0
Business development expenses	31,638		38,135		(17.0	)
Other	261,339		156,868		66.6

	1,091,673		851,845		28.2

Loss before income taxes	(779,046	)	(64,588	)	—
Income tax expense	(69,610	)	3,259		—

Net loss	(709,436	)	(67,847	)	—


	Yen				% Change
Per share of common stock:

Basic-
Net loss	(365.33	)	(35.55	)	—

Diluted-
Net loss	(366.80	)	(35.57	)	—

(3)

Consolidated Statements of Changes in Shareholders’ equity (UNAUDITED)


	Millions of yen
	For the year ended
	March 31, 2009		March 31, 2008
Common stock
Balance at beginning of year	182,800		182,800
New issue of stock	138,965		—

Balance at end of year	321,765		182,800

Additional paid-in capital
Balance at beginning of year	177,227		165,496
Gain (loss) on sales of treasury stock	2,755		(1,458	)
Issuance and exercise of common stock options	9,954		13,189
Issuance of common stock	143,482		—
Beneficial conversion feature relating to (subordinated) convertible bond	69,484		—

Balance at end of year	402,902		177,227

Retained earnings
Balance at beginning of year	1,779,783		1,910,978
Net loss	(709,436	)	(67,847	)
Cash dividends	(48,675	)	(64,883	)
Adjustments to initially apply FIN 48	—		1,266
Adjustments to initially apply EITF 06-2	—		(1,119	)
Adjustments to initially apply SOP 07-1	—		2,049
Adjustments to initially apply SFAS 157	10,383		—
Adjustments to initially apply SFAS 159	5,258		—
Loss on sales of treasury stock	—		(661	)

Balance at end of year	1,037,313		1,779,783

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year	(28,416	)	36,889
Net change during the year	(44,585	)	(65,305	)

Balance at end of year	(73,001	)	(28,416	)

Defined benefit pension plans
Balance at beginning of year	(42,695	)	(30,276	)
Pension liability adjustment	(2,273	)	(12,419	)

Balance at end of year	(44,968	)	(42,695	)

Balance at end of year	(117,969	)	(71,111	)

Common stock held in treasury
Balance at beginning of year	(80,575	)	(79,968	)
Repurchases of common stock	(91	)	(3,525	)
Sale of common stock	73		85
Common stock issued to employees	3,759		2,862
Other net change in treasury stock	(68	)	(29	)

Balance at end of year	(76,902	)	(80,575	)

Total shareholders’ equity
Balance at end of year	1,567,109		1,988,124

(4)

Consolidated Statements of Cash Flows (UNAUDITED)


	Millions of yen
	For the year ended
	March 31, 2009		March 31, 2008
Cash flows from operating activities:
Net loss	(709,436	)	(67,847	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	75,780		63,463
Loss on investments in equity securities	25,500		48,695
Changes in operating assets and liabilities:
Time deposits	72,670		(314,240	)
Deposits with stock exchanges and other segregated cash	(153,059	)	(82,817	)
Trading assets and private equity investments	(3,153,499	)	2,139,627
Trading liabilities	1,323,314		299,611
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase	1,490,423		(2,562,836	)
Securities borrowed, net of securities loaned	(278,318	)	(1,036,076	)
Other secured borrowings	425,886		1,097,679
Loans and receivables, net of allowance	(1,336,288	)	(58,541	)
Payables	994,150		(1,639	)
Other, net	510,248		(172,985	)

Net cash used in operating activities	(712,629	)	(647,906	)

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities	(95,978	)	(126,285	)
Proceeds from sales of office buildings, land, equipment and facilities	38,799		15,621
Payments for purchases of investments in equity securities	(6,236	)	(615	)
Proceeds from sales of investments in equity securities	2,065		7,887
Decrease in loans receivable at banks, net	28,096		14,042
(Increase) decrease in non-trading debt securities, net	(19,415	)	2,665
Other, net	(46,236	)	(15,334	)

Net cash used in investing activities	(98,905	)	(102,019	)

Cash flows from financing activities:
Increase in long-term borrowings	2,091,553		2,425,393
Decrease in long-term borrowings	(1,262,300	)	(1,722,644	)
(Decrease) increase in short-term borrowings, net	(175,988	)	386,048
Increase (decrease) in deposits received at banks, net	126,520		(57,756	)
Proceeds from issuances of common stock	282,447		—
Proceeds from sales of common stock	65		828
Payments for repurchases of common stock	(91	)	(3,525	)
Payments for cash dividends	(64,924	)	(86,866	)
Proceeds from issuances of stock by a subsidiary	2,478		1,401

Net cash provided by financing activities	999,760		942,879

Effect of initial adoption of SOP 07-1 on cash and cash equivalents	—		(38,427	)
Effect of exchange rate changes on cash and cash equivalents	(81,896	)	(57,319	)

Net increase in cash and cash equivalents	106,330		97,208
Cash and cash equivalents at beginning of the period	507,236		410,028

Cash and cash equivalents at end of the period	613,566		507,236

Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

(5)

Events or conditions that may cast significant doubt in assumption as a going concern (UNAUDITED)

None.

(6)

Note to the Consolidated Financial Statements (UNAUDITED)

Summary of accounting policies

The consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2008) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2008) for the year ended March 31, 2008.

Presentations of significant changes in accounting principles are as follows:

Accounting for fair value measurements—

Nomura adopted Financial Accounting Standards Board (“FASB”) SFAS No. 157, “Fair Value Measurements” on April 1, 2008. In accordance with this standard, the adjusted amount due to the initial adoption was recorded in the retained earnings.

Accounting for fair value option for financial assets and financial liabilities—

Nomura adopted FASB SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities including an amendment of FASB Statement No. 115” on April 1, 2008. In accordance with this standard, the adjusted amount due to the initial adoption was recorded in the retained earnings.

Accounting for offsetting of amounts related to certain contracts—

Nomura adopted FASB staff position No. 39-1, “Amendment of FASB Interpretation No. 39” on April 1, 2008. The consolidated balance sheets as of March 31, 2008 have been reclassified in accordance with this standard, as it requires retrospective application.

Segment information-Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of operations.


	Millions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net revenue

Business segment information:
Retail	291,857		402,018		(27.4	)
Global Markets	(157,254	)	95,597		—
Investment Banking	63,499		83,109		(23.6	)
Merchant Banking	(69,875	)	64,793		—
Asset Management	59,789		88,741		(32.6	)

Sub Total	188,016		734,258		(74.4	)
Other	147,748		103,168		43.2

Net revenue	335,764		837,426		(59.9	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(23,137	)	(50,169	)	—

Net revenue	312,627		787,257		(60.3	)


Non-interest expenses

Business segment information:
Retail	273,620		279,702		(2.2	)
Global Markets	417,387		321,794		29.7
Investment Banking	120,910		60,336		100.4
Merchant Banking	15,398		11,473		34.2
Asset Management	52,409		54,790		(4.3	)

Sub Total	879,724		728,095		20.8
Other	211,949		123,750		71.3

Non-interest expenses	1,091,673		851,845		28.2

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—

Non-interest expenses	1,091,673		851,845		28.2


Income (loss) before income taxes

Business segment information:
Retail	18,237		122,316		(85.1	)
Global Markets	(574,641	)	(226,197	)	—
Investment Banking	(57,411	)	22,773		—
Merchant Banking	(85,273	)	53,320		—
Asset Management	7,380		33,951		(78.3	)

Sub Total	(691,708	)	6,163		—
Other *	(64,201	)	(20,582	)	—

Income (loss) before income taxes	(755,909	)	(14,419	)	—

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(23,137	)	(50,169	)	—

Income (loss) before income taxes	(779,046	)	(64,588	)	—

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”


	Millions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)		(A-B)/(B)
Net gain (loss) on trading related to economic hedging transactions	64,152		(9,740	)	—
Realized gain (loss) on investments in equity securities held for operating purposes	(2,363	)	1,474		—
Equity in earnings of affiliates	(718	)	4,743		—
Corporate items	(70,533	)	(13,424	)	—
Others	(54,739	)	(3,635	)	—

Total	(64,201	)	(20,582	)	—

Note:

Defined contribution pension plan business in Asset Management was integrated to Other business in the second quarter of the fiscal year ending March 31, 2009. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.

Per share data

Shareholders’ equity per share is calculated based on the following number of shares.


Number of shares outstanding		2,604,779,843

Net loss per share is calculated based on the following number of shares.


Average number of shares outstanding		1,941,906,637

Disclosure of other notes (lease, intercompany transactions, tax effect accounting, retirement benefit, etc.) have deemed not necessary for this financial summary.

(7)

Other Financial Informations (UNAUDITED)

Consolidated Statements of Operations – Quarterly


	Millions of yen																% Change
	For the three months ended																(B-A)/(A)
	June 30, 2007		September 30, 2007		December 31, 2007		March 31, 2008		June 30, 2008		September 30, 2008		December 31, 2008(A)		March 31, 2009(B)		(B-A)/(A)
Revenue:
Commissions	112,953		106,883		103,434		81,389		82,198		84,886		73,373		66,346		(9.6	)
Fees from investment banking	29,890		16,176		20,340		18,690		13,407		10,026		19,678		11,842		(39.8	)
Asset management and portfolio service fees	47,311		50,910		47,636		43,855		42,779		42,411		29,410		25,566		(13.1	)
Net gain (loss) on trading	99,767		8,669		65,090		(111,806	)	10,515		(21,015	)	(134,518	)	16,679		—
Gain (loss) on private equity investments	46,159		6,774		(2,987	)	26,559		(37,663	)	23,167		(24,782	)	(15,513	)	—
Interest and dividends	294,783		245,912		177,280		78,565		117,957		126,993		45,899		40,507		(11.7	)
(Loss) gain on investments in equity securities	(540	)	(24,216	)	(6,977	)	(16,962	)	964		(9,804	)	(12,938	)	(3,722	)	—
Other	16,309		9,631		(3,444	)	5,689		27,719		1,068		6,588		4,488		(31.9	)

Total revenue	646,632		420,739		400,372		125,979		257,876		257,732		2,710		146,193		—
Interest expense	301,830		244,039		156,119		104,477		122,789		129,667		52,456		46,972		(10.5	)

Net revenue	344,802		176,700		244,253		21,502		135,087		128,065		(49,746	)	99,221		—

Non-interest expenses:
Compensation and benefits	100,653		94,370		93,361		78,421		87,910		80,098		161,823		161,724		(0.1	)
Commissions and floor brokerage	22,684		22,579		20,395		24,534		18,634		20,343		17,561		17,143		(2.4	)
Information processing and communications	29,188		34,719		33,869		37,228		33,359		34,632		40,838		46,151		13.0
Occupancy and related depreciation	15,917		15,131		14,258		19,535		15,868		17,180		23,245		22,187		(4.6	)
Business development expenses	8,811		9,866		9,455		10,003		7,032		7,919		8,123		8,564		5.4
Other	27,609		50,623		28,525		50,111		56,548		37,234		98,206		69,351		(29.4	)

	204,862		227,288		199,863		219,832		219,351		197,406		349,796		325,120		(7.1	)

Income (loss) before income taxes	139,940		(50,588	)	44,390		(198,330	)	(84,264	)	(69,341	)	(399,542	)	(225,899	)	—
Income tax expense	64,002		(38,881	)	22,615		(44,477	)	(7,672	)	3,531		(56,648	)	(8,821	)	—

Net income (loss)	75,938		(11,707	)	21,775		(153,853	)	(76,592	)	(72,872	)	(342,894	)	(217,078	)	—


	Yen																% Change
Per share of common stock:
Basic-
Net income (loss)	39.80		(6.13	)	11.41		(80.62	)	(40.14	)	(38.18	)	(179.62	)	(107.61	)	—

Diluted-
Net income (loss)	39.67		(6.14	)	11.37		(80.68	)	(40.18	)	(38.23	)	(180.97	)	(109.33	)	—

Business Segment Information – Quarterly Results

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of operations.


	Millions of yen																% Change
	For the three months ended																(B-A)/(A)
	June 30, 2007		September 30, 2007		December 31, 2007		March 31, 2008		June 30, 2008		September 30, 2008		December 31, 2008(A)		March 31, 2009(B)		(B-A)/(A)
Net revenue

Business segment information:
Retail	121,840		103,260		98,408		78,510		85,809		74,455		69,650		61,943		(11.1	)
Global Markets	108,909		16,763		103,228		(133,303	)	10,970		(6,538	)	(171,084	)	9,398		—
Investment Banking	36,740		10,812		20,757		14,800		28,986		5,247		22,658		6,608		(70.8	)
Merchant Banking	43,407		8,458		(10,190	)	23,118		(37,009	)	20,500		(34,987	)	(18,379	)	—
Asset Management	25,832		23,251		22,730		16,928		21,112		14,711		10,842		13,124		21.0

Sub Total	336,728		162,544		234,933		53		109,868		108,375		(102,921	)	72,694		—
Other	10,721		37,591		16,433		38,423		24,546		27,992		64,727		30,483		(52.9	)

Net revenue	347,449		200,135		251,366		38,476		134,414		136,367		(38,194	)	103,177		—

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(2,647	)	(23,435	)	(7,113	)	(16,974	)	673		(8,302	)	(11,552	)	(3,956	)	—

Net revenue	344,802		176,700		244,253		21,502		135,087		128,065		(49,746	)	99,221		—


Non-interest expenses

Business segment information:
Retail	71,285		71,054		69,907		67,456		69,630		69,137		67,370		67,483		0.2
Global Markets	82,866		84,453		78,830		75,645		72,589		80,150		124,438		140,210		12.7
Investment Banking	16,003		14,733		15,035		14,565		16,411		13,970		42,601		47,928		12.5
Merchant Banking	3,306		3,031		2,134		3,002		2,357		5,853		2,604		4,584		76.0
Asset Management	12,840		14,879		13,396		13,675		12,960		13,916		12,933		12,600		(2.6	)

Sub Total	186,300		188,150		179,302		174,343		173,947		183,026		249,946		272,805		9.1
Other	18,562		39,138		20,561		45,489		45,404		14,380		99,850		52,315		(47.6	)

Non-interest expenses	204,862		227,288		199,863		219,832		219,351		197,406		349,796		325,120		(7.1	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—		—		—		—		—		—		—

Non-interest expenses	204,862		227,288		199,863		219,832		219,351		197,406		349,796		325,120		(7.1	)


Income (loss) before income taxes

Business segment information:
Retail	50,555		32,206		28,501		11,054		16,179		5,318		2,280		(5,540	)	—
Global Markets	26,043		(67,690	)	24,398		(208,948	)	(61,619	)	(86,688	)	(295,522	)	(130,812	)	—
Investment Banking	20,737		(3,921	)	5,722		235		12,575		(8,723	)	(19,943	)	(41,320	)	—
Merchant Banking	40,101		5,427		(12,324	)	20,116		(39,366	)	14,647		(37,591	)	(22,963	)	—
Asset Management	12,992		8,372		9,334		3,253		8,152		795		(2,091	)	524		—

Sub Total	150,428		(25,606	)	55,631		(174,290	)	(64,079	)	(74,651	)	(352,867	)	(200,111	)	—
Other *	(7,841	)	(1,547	)	(4,128	)	(7,066	)	(20,858	)	13,612		(35,123	)	(21,832	)	—

Income (loss) before income taxes	142,587		(27,153	)	51,503		(181,356	)	(84,937	)	(61,039	)	(387,990	)	(221,943	)	—

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(2,647	)	(23,435	)	(7,113	)	(16,974	)	673		(8,302	)	(11,552	)	(3,956	)	—

Income (loss) before income taxes	139,940		(50,588	)	44,390		(198,330	)	(84,264	)	(69,341	)	(399,542	)	(225,899	)	—

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other”.


	Millions of yen																% Change
	For the three months ended																(B-A)/(A)
	June 30, 2007		September 30, 2007		December 31, 2007		March 31, 2008		June 30, 2008		September 30, 2008		December 31, 2008(A)		March 31, 2009(B)		(B-A)/(A)
Net gain (loss) on trading related to economic hedging transactions	(14,425	)	2,808		364		1,513		1,006		20,188		40,265		2,693		(93.3	)
Realized gain (loss) on investments in equity securities held for operating purposes	2,107		(781	)	135		13		291		(1,503	)	(1,385	)	234		—
Equity in earnings of affiliates	5,105		2,579		(5,247	)	2,306		2,061		3,999		(376	)	(6,402	)	—
Corporate items	(9,687	)	(12,252	)	(11,750	)	20,265		(5,620	)	(2,349	)	(34,953	)	(27,611	)	—
Others	9,059		6,099		12,370		(31,163	)	(18,596	)	(6,723	)	(38,674	)	9,254		—

Total	(7,841	)	(1,547	)	(4,128	)	(7,066	)	(20,858	)	13,612		(35,123	)	(21,832	)	—


Note:		Defined contribution pension plan business in Asset Management was integrated to Other business in the second quarter of the fiscal year ending March 31, 2009. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.

“Commissions/fees received” and “Net gain on trading” consists of the following


	Millions of yen															% Change		Millions of yen				% Change
	For the three months ended																	For the year ended
	June 30, 2007	September 30, 2007		December 31, 2007		March 31, 2008		June 30, 2008		September 30, 2008		December 31, 2008(A)		March 31, 2009(B)		(B-A)/(A)		March 31, 2008(C)		March 31, 2009(D)		(D-C)/(C)
Commissions/fees received

Commissions	112,953	106,883		103,434		81,389		82,198		84,886		73,373		66,346		(9.6	)	404,659		306,803		(24.2	)

Brokerage Commissions	64,169	64,655		65,471		56,730		49,287		53,840		60,208		40,028		(33.5	)	251,025		203,363		(19.0	)
Commissions for Distribution of Investment Trust	39,172	34,223		30,600		17,247		25,811		24,173		6,897		19,056		176.3		121,242		75,937		(37.4	)

Fees from Investment Banking	29,890	16,176		20,340		18,690		13,407		10,026		19,678		11,842		(39.8	)	85,096		54,953		(35.4	)

Underwriting and Distribution	10,469	10,434		14,219		10,524		6,815		3,385		9,424		5,491		(41.7	)	45,646		25,115		(45.0	)
M&A / Financial Advisory Fees	18,187	5,691		5,747		8,192		4,568		6,218		10,119		5,824		(42.4	)	37,817		26,729		(29.3	)

Asset Management and Portfolio Service Fees	47,311	50,910		47,636		43,855		42,779		42,411		29,410		25,566		(13.1	)	189,712		140,166		(26.1	)

Asset Management Fees	42,904	46,150		43,358		39,552		38,485		38,358		26,027		22,574		(13.3	)	171,964		125,444		(27.1	)
Total	190,154	173,969		171,410		143,934		138,384		137,323		122,461		103,754		(15.3	)	679,467		501,922		(26.1	)


Net gain (loss) on trading

Merchant Banking	255	2,010		(5,149	)	(2,085	)	(69	)	(457	)	(584	)	(1,550	)	—		(4,969	)	(2,660	)	—
Equity Trading	51,696	28,189		25,574		31,496		33,267		1,717		(13,973	)	(59,671	)	—		136,955		(38,660	)	—
Fixed Income and Other Trading	47,816	(21,530	)	44,665		(141,217	)	(22,683	)	(22,275	)	(119,961	)	77,900		—		(70,266	)	(87,019	)	—

Total	99,767	8,669		65,090		(111,806	)	10,515		(21,015	)	(134,518	)	16,679		—		61,720		(128,339	)	—

5.	Unconsolidated Financial Statements

(1)

Unconsolidated Balance Sheet (UNAUDITED)


	(Million of yen)
	March 31, 2009		March 31, 2008		Increase/(Decrease)
*ASSETS*
Current Assets	1,852,470		2,272,127		(419,657	)

Cash and time deposits	1,225		1,416		(191	)
Certificate deposits	20,500		18,800		1,700
Money held in trust	57,077		78,533		(21,456	)
Short-term loans receivable	1,659,355		2,068,347		(408,992	)
Accounts receivable	68,858		76,783		(7,925	)
Deferred tax assets	25,512		1,370		24,142
Other current assets	24,760		26,883		(2,124	)
Allowance for doubtful accounts	(4,817	)	(6	)	(4,811	)
Fixed Assets	1,830,326		2,177,683		(347,357	)

Tangible fixed assets	55,877		52,216		3,661
Buildings	20,446		16,688		3,758
Furniture & fixtures	26,591		26,688		(97	)
Land	8,839		8,839		—
Intangible assets	110,217		142,339		(32,122	)
Software	110,217		142,339		(32,122	)
Investments and others	1,664,232		1,983,128		(318,896	)
Investment securities	118,980		156,267		(37,287	)
Investments in subsidiaries and affiliates (at cost)	1,159,429		1,286,638		(127,209	)
Other securities of subsidiaries and affiliates	24,111		26,021		(1,910	)
Long-term loans receivable from subsidiaries and affiliates	135,000		309,000		(174,000	)
Long-term guarantee deposits	42,671		49,548		(6,877	)
Deferred tax assets	155,297		131,793		23,504
Other investments	28,802		23,893		4,909
Allowance for doubtful accounts	(57	)	(32	)	(25	)

TOTAL ASSETS	3,682,796		4,449,810		(767,014	)


	(Millions of yen)
	March 31, 2009		March 31, 2008		Increase/ (Decrease)
*LIABILITIES*
Current liabilities	614,408		1,601,961		(987,553	)

Short-term borrowings	470,000		1,446,500		(976,500	)
Bond due within one year	60,000		50,000		10,000
Collaterals received	39,663		57,035		(17,372	)
Accrued income taxes	2		11,296		(11,294	)
Other current liabilities	44,744		37,131		7,612
Long-term liabilities	1,825,139		1,424,188		400,951

Bonds payable	695,446		354,930		340,515
Convertible Bonds	110,000		—		110,000
Long-term borrowings	1,018,000		1,067,000		(49,000	)
Other long-term liabilities	1,693		2,257		(564	)

TOTAL LIABILITIES	2,439,547		3,026,149		(586,602	)

*NET ASSETS*
Shareholders’ equity	1,191,520		1,372,324		(180,804	)
Common stock	321,765		182,800		138,965
Additional paid-in capital	251,469		112,504		138,965
Capital reserve	251,469		112,504		138,965
Retained earnings	692,839		1,155,315		(462,476	)
Retained earnings reserve	81,858		81,858		—
Other retained earnings	610,981		1,073,457		(462,476	)
Reserve for specified fixed assets	13		16		(3	)
General reserve	994,000		994,000		—
Retained earnings carried forward	(383,032	)	79,442		(462,473	)
Treasury stock	(74,554	)	(78,296	)	3,742
Valuation and translation adjustments	24,613		39,936		(15,323	)
Net unrealized gain on investments	16,157		34,914		(18,756	)
Deferred gains or loss on hedges	8,456		5,023		3,433
Stock acquisition rights	27,116		11,401		15,715

TOTAL NET ASSETS	1,243,249		1,423,661		(180,412	)

TOTAL LIABILITIES AND NET ASSETS	3,682,796		4,449,810		(767,014	)

(2)

Unconsolidated Statements of Operations (UNAUDITED)


	(Millions of yen)
	For the year ended March 31, 2009(A)		For the year ended March 31, 2008(B)		% Change (A-B)/(B)
Operating revenue	340,071		419,649		(19.0	)%

Property and equipment fee revenue	116,478		103,971		12.0
Rent revenue	38,450		37,890		1.5
Royalty on trademark	14,088		19,870		(29.1	)
Dividend from subsidiaries and affiliates	143,552		228,462		(37.2	)
Others	27,502		29,457		(6.6	)
Operating expenses	204,768		175,269		16.8

Compensation and benefits	21,884		15,039		45.5
Rental and maintenance	42,954		44,742		(4.0	)
Data processing and office supplies	37,802		33,850		11.7
Depreciation and amortization	54,056		44,002		22.8
Others	13,545		8,453		60.2
Interest expenses	34,529		29,183		18.3

Operating income	135,303		244,380		(44.6	)

Non-operating income	2,776		3,369		(17.6	)
Non-operating expenses	10,898		1,518		618.1

Ordinary income	127,181		246,231		(48.3	)

Special profits	2,739		7,300		(62.5	)
Gain on sales of investment securities	2,577		7,300		(64.7	)
Gain on sales of fixed assets	162		—		—
Special losses	568,410		231,048		146.0
Loss on sales of investment securities	636		1,106		(42.5	)
Loss on devaluation of investment securities	8,451		2,155		292.1
Loss on devaluation of investments in subsidiaries and affiliates	556,759		224,565		147.9
Loss on retirement of fixed assets	2,564		3,221		(20.4	)

Income before income taxes	(438,491	)	22,483		—

Income taxes - current	(6,949	)	13,445		—

Income taxes - deferred	(36,997	)	(44,946	)	—

Net income (loss)	(394,545	)	53,985		—

(3)

Unconsolidated Statements of Changes in Shareholders’ Equity (UNAUDITED)


	(Millions of yen)
	Year ended March 31
	2009		2008
Shareholder’s Equity
Common stock
Balance at beginning of the year	182,800		182,800
Change in the year
Issuance of new shares	138,965		—

Total change in the year	138,965

Balance at end of the year	321,765		182,800

Additional paid-in capital
Capital reserve
Balance at beginning of the year	112,504		112,504
Change in the year
Issuance of new shares	138,965		—

Total change in the year	138,965		—

Balance at end of the year	251,469		112,504

Other capital reserve
Balance at beginning of the year	—		1,458
Change in the year
Disposal of treasury stock	—		(1,458	)

Total change in the year	—		(1,458	)

Balance at end of the year	—		—

Total capital reserve
Balance at beginning of the year	112,504		113,962
Change in the year
Issuance of new shares	138,965		—
Disposal of treasury stock	—		(1,458	)

Total change in the year	138,965		(1,458	)

Balance at end of the year	251,469		112,504

Retained earnings
Retained earnings reserve
Balance at beginning of the year	81,858		81,858

Balance at end of the year	81,858		81,858

Other retained earnings
Reserve for specified fixed assets
Balance at beginning of the year	16		19
Change in the year
Reversal of reserve for specified fixed assets	(3	)	(3	)

Total change in the year	(3	)	(3	)

Balance at end of the year	13		16

General reserve
Balance at beginning of the year	994,000		994,000

Balance at end of the year	994,000		994,000

Retained earnings carried forward
Balance at beginning of the year	79,442		112,981
Change in the year
Cash dividends	(64,924	)	(86,866	)
Reversal of reserve for specified fixed assets	3		3
Net income (loss)	(394,545	)	53,985
Disposal of treasury stock	(3,007	)	(661	)

Total change in the year	(462,473	)	(33,540	)

Balance at end of the year	(383,032	)	79,442

Total retained earnings
Balance at beginning of the year	1,155,315		1,188,858
Change in the year
Cash dividends	(64,924	)	(86,866	)
Net income (loss)	(394,545	)	53,985
Disposal of treasury stock	(3,007	)	(661	)

Total change in the year	(462,476	)	(33,543	)

Balance at end of the year	692,839		1,155,315


	(Millions of yen)
	Year ended March 31
	2009		2008
Treasury stock
Balance at beginning of the year	(78,296	)	(77,717	)
Change in the year
Purchases of treasury stock	(91	)	(3,525	)
Disposal of treasury stock	3,832		2,947

Total change in the year	3,742		(579	)

Balance at end of the year	(74,554	)	(78,296	)

Total shareholders’ equity
Balance at beginning of the year	1,372,324		1,407,903
Change in the year
Issuance of new shares	277,930		—
Cash dividends	(64,924	)	(86,866	)
Net income (loss)	(394,545	)	53,985
Purchases of treasury stock	(91	)	(3,525	)
Disposal of treasury stock	826		828

Total change in the year	(180,804	)	(35,579	)

Balance at end of the year	1,191,520		1,372,324

Valuation and translation adjustments
Net unrealized gain on investments
Balance at beginning of the year	34,914		67,013
Change in the year
Other-net	(18,756	)	(32,099	)

Total change in the year	(18,756	)	(32,099	)

Balance at end of the year	16,157		34,914

Deferred gains or loss on hedges
Balance at beginning of the year	5,023		(812	)
Change in the year
Other-net	3,433		5,835

Total change in the year	3,433		5,835

Balance at end of the year	8,456		5,023

Total valuation and translation adjustments
Balance at beginning of the year	39,936		66,201
Change in the year
Other-net	(15,323	)	(26,265	)

Total change in the year	(15,323	)	(26,265	)

Balance at end of the year	24,613		39,936

Stock acquisition rights
Balance at beginning of the year	11,401		1,224
Change in the year
Other-net	15,715		10,177

Total change in the year	15,715		10,177

Balance at end of the year	27,116		11,401

Total net assets
Balance at beginning of the year	1,423,661		1,475,328
Change in the year
Issuance of new shares	277,930		—
Cash dividends	(64,924	)	(86,866	)
Net income (loss)	(394,545	)	53,985
Purchases of treasury stock	(91	)	(3,525	)
Disposal of treasury stock	826		828
Other-net	392		(16,088	)

Total change in the year	(180,412	)	(51,667	)

Balance at end of the year	1,243,249		1,423,661

(4)

Events or conditions that may cast significant doubt in assumption as a going concern (UNAUDITED)

None.

Other

(1)

Changes of directors

Not applicable.

Reference Information

Unconsolidated Financial Information of Major Consolidated Entities

(UNAUDITED)

The unconsolidated financial information, prepared under Japanese GAAP, is presented for the following entities;

-Nomura Securities Co., Ltd. Financial Information

* The amounts are rounded to the nearest million.

Nomura Securities Co., Ltd.

Unconsolidated Balance Sheet Information


	(Millions of yen)
	March 31, 2009		March 31, 2008		Increase/(Decrease)
ASSETS
Current Assets	12,682,853		13,094,317		(411,465	)

Cash and time deposits	246,865		99,821		147,044
Deposits with exchanges and other segregated cash	692		50,692		(50,000	)
Trading assets:	6,377,645		6,012,280		365,365
Trading securities	4,976,307		4,973,376		2,931
Derivative contracts	1,401,338		1,038,904		362,435
Net receivables arising from pre-settlement date trades	590,008		—		590,008
Margin account assets:	62,478		165,368		(102,889	)
Loans to customers in margin transactions	45,976		143,666		(97,690	)
Cash collateral to securities finance companies	16,503		21,701		(5,199	)
Loans with securities as collateral:	4,920,428		6,235,494		(1,315,067	)
Cash collateral for securities borrowed	4,246,174		5,373,927		(1,127,752	)
Loans in gensaki transactions	674,253		861,568		(187,314	)
Receivables from customers and others	4,385		1,319		3,065
Short-term guarantee deposits	296,310		339,539		(43,228	)
Short-term loans receivable	3,761		37,125		(33,364	)
Deferred tax assets	107,470		106,066		1,403
Other current assets	72,823		46,646		26,177
Allowance for doubtful accounts	(11	)	(32	)	21

Fixed Assets	113,611		77,385		36,226

Tangible fixed assets	114		58		56
Intangible assets	7,177		1,672		5,505
Investments and others	106,320		75,655		30,665
Investment securities	195		195		—
Deferred tax assets	57,737		41,262		16,475
Other investments	48,937		34,865		14,072
Allowance for doubtful accounts	(549	)	(667	)	118

TOTAL ASSETS	12,796,464		13,171,702		(375,238	)


	(Millions of yen)
	March 31, 2009	March 31, 2008	Increase/ (Decrease)
LIABILITIES
Current Liabilities	11,059,662	11,605,224	(545,562	)

Trading liabilities:	2,129,948	2,887,090	(757,143	)
Trading securities	1,706,193	2,277,593	(571,401	)
Derivative contracts	423,755	609,497	(185,742	)
Net payables arising from pre-settlement date trades	—	8,048	(8,048	)
Margin account liabilities:	38,194	13,144	25,050
Borrowings from securities finance companies	1,203	2,736	(1,533	)
Customer margin sale proceeds	36,991	10,408	26,583
Borrowings with securities as collateral:	3,345,360	3,977,051	(631,691	)
Cash collateral for securities loaned	1,404,061	2,688,318	(1,284,258	)
Borrowings in gensaki transactions	1,941,299	1,288,732	652,567
Payables to customers and others	113,075	137,213	(24,138	)
Guarantee deposits received	792,365	95,581	696,784
Short-term borrowings	4,254,146	3,911,100	343,046
Short-term bonds payable	315,900	336,500	(20,600	)
Bond due within one year	—	100,000	(100,000	)
Accrued income taxes	179	12,307	(12,128	)
Accounts payable	6,416	61,649	(55,233	)
Accrued bonuses for employees	22,692	15,200	7,492
Other current liabilities	41,388	50,341	(8,953	)
Long-term Liabilities	1,009,831	701,840	307,990

Bonds payable	224,287	224,285	1
Long-term borrowings	692,700	404,400	288,300
Reserve for retirement benefits	55,704	62,523	(6,820	)
Other long-term liabilities	37,140	10,632	26,509
Statutory Reserves	5,519	5,626	(107	)

Reserve for financial instruments transactions	5,519	—	—
Reserve for securities transactions	—	5,626	—

TOTAL LIABILITIES	12,075,012	12,312,691	(237,679	)

NET ASSETS
Shareholder’s equity	719,322	857,535	(138,214	)
Common stock	10,000	10,000	—
Capital reserves	529,579	529,579	—
Additional paid-in capital	529,579	529,579	—
Earned surplus	179,743	317,957	(138,214	)
Other Earned surplus	179,743	317,957	(138,214	)
General reserve	63,000	63,000	—
Earned surplus carried forward	116,743	254,957	(138,214	)
Valuation and translation adjustments	2,131	1,476	654
Deferred gains or loss on hedges	2,131	1,476	654

TOTAL NET ASSETS	721,453	859,012	(137,559	)

TOTAL LIABILITIES AND NET ASSETS	12,796,464	13,171,702	(375,238	)

Nomura Securities Co., Ltd.

Unconsolidated Income Statement Information


	(Millions of yen except percentages)
	For the year ended March 31, 2009(A)		For the year ended March 31, 2008(B)		% Change (A-B)/(B)
Operating revenue	502,201		710,537		(29.3	)%

Commissions	281,769		397,399		(29.1	)
Net gain on trading	96,642		162,176		(40.4	)
Net gain on other inventories	12		15		(23.5	)
Interest and dividend income	123,779		150,946		(18.0	)
Interest expenses	116,499		108,272		7.6

Net operating revenue	385,702		602,265		(36.0	)

Selling, general and administrative expenses	445,994		437,126		2.0

Transaction-related expenses	70,525		83,323		(15.4	)
Compensation and benefits	173,912		167,625		3.8
Rental and maintenance	52,938		49,726		6.5
Data processing and office supplies	137,159		123,378		11.2
Others	11,459		13,074		(12.3	)

Operating income (loss)	(60,292	)	165,138		—

Non-operating income	2,404		1,608		49.5
Non-operating expenses	2,187		2,013		8.7

Ordinary income (loss)	(60,075	)	164,734		—

Special profits	1,847		1,667		10.8
Gains due to the exemption from payments of share-based compensation	1,739		1,667		4.3
Reversal of reserve for financial instruments transactions	107		—		—
Special losses	4,010		1,281		213.1
Loss on transition to defined contribution pension plan	4,010		—		—
Reserve for securities transactions	—		1,281		—

Income (loss) before income taxes	(62,238	)	165,120		—

Income taxes - current	(6,396	)	93,022		—

Income taxes - deferred	(18,333	)	(28,078	)	—

Net income (loss)	(37,509	)	100,177		—

Nomura Securities Co., Ltd.

Quarterly Income Statement Information


	(Millions of yen)
	For the Quarter from April 1, 2008 to June 30, 2008		For the Quarter from July 1, 2008 to September 30, 2008		For the Quarter from October 1, 2008 to December 31, 2008		For the Quarter from January 1, 2009 to March 31, 2009		Year Ended March 31, 2009
Operating revenue	158,921		113,660		60,021		169,599		502,201

Commissions	74,152		72,669		69,899		65,048		281,769
Net gain (loss) on trading	41,554		14,938		(47,779	)	87,929		96,642
Net gain on other inventories	2		4		3		3		12
Interest and dividend income	43,214		26,049		37,897		16,618		123,779

Interest expenses	37,236		24,795		36,629		17,838		116,499

Net operating revenue	121,685		88,865		23,392		151,760		385,702

Selling, general and administrative expenses	102,737		104,383		115,666		123,208		445,994

Transaction-related expenses	16,177		18,221		17,181		18,946		70,525
Compensation and benefits	40,780		39,063		46,836		47,232		173,912
Rental and maintenance	12,047		12,177		14,393		14,321		52,938
Data processing and office supplies	30,734		32,250		34,497		39,678		137,159
Other	2,998		2,672		2,759		3,030		11,459

Operating income (loss)	18,948		(15,518	)	(92,274	)	28,552		(60,292	)

Non-operating income	212		1,590		184		418		2,404
Non-operating expenses	289		516		594		789		2,187

Ordinary income (loss)	18,871		(14,444	)	(92,685	)	28,182		(60,075	)

Special profits	532		444		437		434		1,847
Gains due to the exemption from payments of share-based compensation	462		406		425		446		1,739
Reversal of allowance for doubtful accounts	1		—		(1	)	—		—
Reversal of reserve for financial instruments transactions	70		38		13		(12	)	107
Special losses	—		—		6,860		(2,851	)	4,010
Loss on transition to defined contribution pension plan	—		—		6,860		(2,851	)	4,010

Income (loss) before income taxes	19,404		(14,000	)	(99,107	)	31,466		(62,238	)

Income taxes - current	(3,996	)	12,603		(23,590	)	8,586		(6,396	)

Income taxes - deferred	9,835		(18,555	)	(19,562	)	9,948		(18,333	)

Net income (loss)	13,564		(8,048	)	(55,956	)	12,932		(37,509	)

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

1. Commission Revenues

(1) Breakdown by Category


	(Millions of yen except percentages)
	Year Ended		% Change (A-B)/(B)
	March 31, 2009 (A)	March 31, 2008 (B)	% Change (A-B)/(B)
Brokerage commissions	83,981	115,401	(27.2	) %

(Stocks)	78,363	109,023	(28.1	)
Underwriting commissions	20,010	27,941	(28.4	)

(Stocks)	14,242	24,117	(40.9	)
(Bonds)	5,768	3,824	50.8
Distribution commissions	76,382	122,744	(37.8	)

(Investment trust certificates)	75,815	121,150	(37.4	)
Other commissions	101,396	131,313	(22.8	)

(Investment trust certificates)	50,271	64,246	(21.8	)

Total	281,769	397,399	(29.1	)

(2) Breakdown by Product


	(Millions of yen except percentages)
	Year Ended		% Change (A-B)/(B)
	March 31, 2009 (A)	March 31, 2008 (B)	% Change (A-B)/(B)
Stocks	96,825	139,689	(30.7	)%
Bonds	9,054	9,760	(7.2	)
Investment trust certificates	131,054	189,737	(30.9	)
Others	44,835	58,213	(23.0	)

Total	281,769	397,399	(29.1	)

2. Net Gain (Loss) on Trading


	(Millions of yen except percentages)
	Year Ended			% Change (A-B)/(B)
	March 31, 2009 (A)		March 31, 2008 (B)	% Change (A-B)/(B)
Stocks	(36,283	)	38,022	—	%
Bonds and forex	132,925		124,154	7.1

Total	96,642		162,176	(40.4	)

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

3. Stock Trading (excluding futures transactions)


	(Millions of shares or yen except per share data and percentages)
	Year Ended								% Change (A-B)/(B)
	March 31, 2009 (A)				March 31, 2008 (B)				% Change (A-B)/(B)
	Number of shares		Amount		Number of shares		Amount		Number of shares		Amount
Total	75,098		74,068,564		74,537		106,650,507		0.8	%	(30.6	)%

(Brokerage)	46,600		45,202,796		45,558		63,741,516		2.3		(29.1	)
(Proprietary Trading)	28,498		28,865,768		28,979		42,908,991		(1.7	)	(32.7	)

Brokerage / Total	62.1	%	61.0	%	61.1	%	59.8	%

TSE Share	6.3	%	6.7	%	6.0	%	6.6	%

Brokerage Commission per share (yen)	1.65				2.37

4. Underwriting, Subscription, and Distribution


	(Millions of shares or yen except percentages)
	Year Ended		% Change (A-B)/(B)
	March 31, 2009 (A)	March 31, 2008 (B)	% Change (A-B)/(B)
Underwriting
Stocks (number of shares)	432	141	206.8	%
(yen amount)	511,831	710,200	(27.9	)
Bonds (face value)	6,042,417	6,995,085	(13.6	)
Investment trust certificates (yen amount)	—	—	—
Beneficial interest (face value)	—	11,800	—
Subscription and Distribution*
Stocks (number of shares)	471	295	59.7
(yen amount)	407,583	835,801	(51.2	)
Bonds (face value)	3,005,057	3,750,872	(19.9	)
Investment trust certificates (yen amount)	14,658,925	20,429,301	(28.2	)
Beneficial interest (face value)	—	3,000	—

*	Includes secondary offering and private placement.

5. Capital Adequacy Ratio


				(Rounded down to millions of yen except percentages)
				March 31, 2009		March 31, 2008		Increase/ (Decrease)
Tier I		(A	)	719,321		756,830		(37,509	)


Tier II	Valuation and translation adjustments			2,130		1,476		654
	Statutory reserves			5,518		5,626		(108	)
	Allowance for doubtful accounts			11		32		(21	)
	Subordinated debt			606,085		516,085		90,000

	Total	(B	)	613,747		523,220		90,527

Illiquid Asset		(C	)	136,123		145,932		(9,809	)

Net Capital (A) + (B) - (C) =		(D	)	1,196,946		1,134,117		62,829

Risk	Market risk			99,113		108,263		(9,150	)
	Counterparty risk			210,482		259,810		(49,328	)
	Basic risk			135,675		132,823		2,852

	Total	(E	)	445,271		500,896		(55,625	)

Capital Adequacy Ratio		(D	)/(E)	268.8	%	226.4	%	42.4	%

Net revenue decreased 23.6% from the previous year to 63.5 billion yen, due primarily to the decline in transaction volume in the equity finance reflecting instability across the global stock markets. The acquisition of certain operations of Lehman Brothers led to increase 100.4% non-interest expenses to 120.9 billion yen. As a result, loss before income taxes was 57.4 billion yen.

Operating Results of Merchant Banking